KW - Earnings call transcript Q4 2020 | Kennedy-Wilson Holdings, Inc.

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Operator

Good day and welcome to the Kennedy-Wilson Fourth Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Daven Bhavsar, Vice President of Investor Relations. Please go ahead.

Daven Bhavsar

Thank you and good morning. Kennedy-Wilson; and of today of Kennedy-Wilson; Windisch, Vice Bhavsar, Chairman Bill Kennedy-Wilson; Daven Chief Executive CEO Enbody, and Mary President, is joining of are us McMorrow, Matt Financial This Officer Justin Kennedy-Wilson. and Ricks, President be will will and live replay. be webcast for call Today’s archived The X and available by webcast for be replay phone for will by week X months. the information. more Relations for website Investor Please see adjusted non-GAAP call, financial to measures, net we income. EBITDA adjusted this On certain and will including refer

differ of description the and Relations a on is You reports results would statements. items Commission. GAAP along measure the McMorrow. made other of find can from the due to uncertainties discussed fourth CEO, and section Securities which of in reconciliation the now factors to these to website. indicated forward-looking Statements the forward-looking Bill the Actual call Exchange earnings information number with during most financial Investor call with our posted this on risks, release, comparable over and this directly turn of our include I quarter Chairman call and like our XXXX filings may may and materially

Bill McMorrow

in everybody which ended the year cash, of solid uncertainty, $X risk-adjusted us also our we advanced a with strategic this new you, results, environment billion assets, will as reported investment to and and meaningful Good always, our grew year produce for off I as platforms a a a businesses company that global joining the way. deploy proud caps which for of Daven you. future. core record during positions XXXX record only quarter thank into resilience a across it team’s accomplishments tremendous call adapting while morning, We our we Yesterday, am financial today. not thank returns. growth a of year in which in extremely the in of we our but initiatives

industrial pipeline tremendous our well our debt and of and fund UK account a businesses. portfolios rate completing multifamily housing or evaluating in for currently vintage origination office market our for as new are acquisitions separate We portfolio U.S., the transactions and the opportunities management as in

growth grow operating our in and We expect XXXX XXXX, our fee-bearing new urban we throughout with fee very income which reached acquisition our the expansion in $X.X our quarter, our net active was direct streams. GIC, year in capital as venture management representing partnerships, billion investment of capital debt result grew successfully both logistics launched and XX% The joint the which platform in new Through a a of our our and the growth through December. deploying year. a platform we

strong our Our with in operational and collected suburban performance portfolio, we maintained office and QX rent occupancy portfolio global as largely strong multifamily rents and across collections our across was overall of XX% XX% continued high XXXX. for

delivered across returns we our dispositions. attractive very Finally,

of approximately As gross meaningful a $XXX to our gains the on transactional we $XXX dispositions activity, in a approximately million program in quarter, way sale recycling we QX. million completed saw strong asset in We in in generating pickup KW. resumed

QX. new very is also $XXX acquisition our And investments of million mentioned, in pipeline in We I as strong. far, completed XXXX, thus

million. and EPS in with results, per quarter adjusted earnings QX, million of produced of a EBITDA of we $XXX income financial adjusted net our at record GAAP share, $XXX Looking $X.XX of

share, of EBITDA adjusted adjusted For and $XXX year, we million, $XXX income of produced $X.XX GAAP per of the EPS net million.

billion grew of of to mentioned, our a the $X credit. liquidity dispositions availability position $XXX as As QX, million of with line cash, in on in I result our

remained our constant. assets the have of end while total since position Our cash has now doubled XXXX,

or overall approximately form improve market strength of in maturing unsecured million our the unsecured returned the of we the in proceeds our billion in X payoff to an company and majority share used tranches in separate share. existing XXXX, bonds and per XXXX. bond the X.XXX% quarter shareholders issuance We $X In maturity our The $XXX QX. In of buyback issuance in million $XXX to average $XXX average $X.XX also completed repurchases interest opportunistically the the Post cost of in We continue bonds use years and authorization million took profile. rate debt to two X dividends with XX this weighted total, end, of a in of advantage and years. weighted X.XXX% were of due had to years. of maturity

X% puts debt profile, which property our debt, refinancing. we of businesses. secured growing in very rates, duration than debt of with maturing, in extended And record less liquidity, us which level an basis is In Thus, our the will annual achieve years. improved with X result, interest. continue $XX a a strong position anticipate in XXX As of have to million we our our bonds all XXXX, together our by improvement we a we point savings

One loan now our on of $X We U.S. by million. grew platform loans new totals through of launched debt estate two secured XXXX, platforms: which a existing $XXX debt in X%, platform billion by with key real markets $XX with high-quality focused is sponsorship average our our to grow launching strong management accomplished sizes in which and first, business, strategically in largely new our million. we initiatives we investment May,

rates fees, to an ownership double-digit platform, between returns generating interest and unlevered in have is XX% We this KW. the which

and with expand new in the prime was venture across locations in billion million with sovereign XX assets urban Kennedy-Wilson into in potential an Secondly, a portfolio Fund, a has opportunities UK. Ireland platform. $X Wealth Singapore’s the we with existing GIC, $XXX interest joint seeded UK focused This on new logistics launched to Spain. XX% platform the with this

platforms, grew As mentioned, a two XX%. these our fee-bearing as new capital, result by of I

rapidly to accelerating well of the see e-commerce as surpass consumer. logistics sites platform billion end the over XXXX. and of we $X needs to close strengthen of in platform our opportunity the and urban Across a the platforms, pipeline new need loan is various our changing Our all opportunities of grow to expect on closer logistics have million we robust shortly, that to track consumers we $XXX for

fee-bearing more doubled Our of since the XXXX. than capital beginning has

the the additional billion. $X.X have potential to we Given announced fee-bearing we $X.X our platforms, of add for capacity existing have incremental billion in capital the

are our We and streams. recurring portfolio growing our on from focused very fee our property NOI growing

turn over with would Mary that, Ricks. I to So it like to

Mary Ricks

market market. our we an stood month. for an State together, XX% collected across acquisition, In XXXX. of U.S. portfolio, our our for We very multifamily remain Mountain Thanks, XX.X% at XXX our our rents our solid added we and portfolio compared our XX% showing collections challenging assets rents at with our early $X,XXX QX, accounting in half of rent where off-market XX% office of XX.X% market, stabilized portfolio Mountain which, per our monthly occupancy that outperformed portfolio. in another QX investor, end capabilities pleased for units were XXXX. to XX% collected report State the global Bill. account rent The NOI in nearly of of properties, Suburban market, the of accounts the units. I’m average multifamily and across sourcing at and through multifamily our all multifamily a now remained to rate largest in assets, is region, to U.S. strong

this impacting XXX States units, XXXX. Mountain According Census and X.X%, the Idaho, State X,XXX NOI including including our We for the Phoenix, by estimates new approximately population continue revenue over the units our to the we acquired positively evaluate and Albuquerque today. and Arizona, XXXX. region. worth Utah in portfolio X% under NOI and Bureau, X same-property assets trends revenue new states last X% resulting released and are have noting Colorado markets, a up grow development to strong These attractive Nevada to in with were up which we’ve in opportunities Mountain had in U.S. results, months, It’s quarter that approximately in XX top Springs, growth growth in

million. In Dublin stood pandemic increased million. the in collections Multifamily remained XX.X%, mostly $XX during side, since the XX% in implemented realized sale million. Encouragingly, down for $XX employers in originally In related at sold moving and as home asset lows. Palisades from our started value-add enhancements renovations by Dublin, total, home. we of when rent acquired from high and And interior the of NOI tenant this gain has of very the QX occupancy ownership amenities. countries then, QX. the an Club program, in we as at workers Washington allowed to from state back XX% of back their the slightly including On November for impressive XXXX management increased move-outs disposition occupancy over to property $XXX our working We all foreign result a

budget, to have momentum professionally be through residents world to to completions a We per aim of our the attractive seen amenitized as to unique post-COVID address positive to as continue our managed of the We this X,XXX of at are where XX% Dublin. CT look to in structural is apartments And in continuing we needed of Phase at shortage our leased. this to Plan QX annually This ahead needed of and well believe X,XXX units year are apartment the apartments. now February was highly in offering demonstrated leasing provide forward units housing short continue X,XXX Dublin. approximately much X prospective will best upgrade end we

at office the XX.X% our of to portfolio, Turning remained end end the at XX.X% year XXXX. stable the to at of global compared occupancy

portfolio lease and Microsoft, expiration. And stabilized Our and office of Street, average Indeed KPMG, UK a term has top to X.X Italian include office the tenants attractive years an weighted overall, to State few. our name Costco, governments

For collections once our collected strong of again rents. continue as very the to we quarter, XX% office rent remain

far, QX so remained on rent track. have collections And in

completed our this gain on of $XX from X.X to XXXX commercial million strong years. we the quality office the leases million XXX,XXX Dublin of $XXX disposition million, new saw demand we for commercial asset side, and our we lease Globally, brings which of sale walt activity strong quarter. square the feet, across unlevered sold and extensions a as institutional in On The during a with demonstrates product feet of and total call, square Plaza discussed X.X leasing capital. generated leasing of last Baggot cash

office collaboratively and for required. locations. with can low dropping or hubs colleagues or either XX% low an deals office In and of that single-tenant XX% is our a of completed looking properties, park. these rise local flex for in are growing a continue the renewals where predominantly people office spaces new connect, and QX NOI use and buildings by facilities that from both suburban in to we comes when on office demand work clients for space focus U.S., NOI mid-rise from regional our seen generated As in a tenants and largest the in exemplified portfolio reminder, the occupied We’ve our

As this of an are provide financial space to those reserving the outside firms accounting momentum, we commuting hub-and-spoke and suburban to example reduce city model and seeing resources center.

firms tell positioned choice too this. starting office the benefit we’re both While some portfolio it of our ours is location, office is see and feel to evidence suburban their employees to providing we with outcome, and flexibility early in low-rise final from of to

companies QX. to our square remains leasing our in beyond over the COVID As pipeline activity with XXX,XXX of feet look at begin strong end

to in the lease to this XXXX. incremental hard close adding And KW $X.X first lease half working year. are We XX completed of million we’ve in transactions of transactions, already these income

that, So we to turn call And with start. good a to the Bill. like would to are back off I

Bill McMorrow

units million higher be includes I as is construction buying to near-term for was us strategic now we leased. build is X,XXX from we units would our achieved of QX, joint and is acres now hotel. XXX total end bringing which assets. Kennedy-Wilson’s an ventures well land well XX Degree extremely of partners, the in the project leasing X. square be achieve portfolio, focus Mary. new feet to another new of XX of add September in XX and than substantially returns Phase Many units, X to are important themselves, commercial development units. development XX% with discuss which will and these with unlevered the finished product acquired completion of North The North XXX adjacent complete completed Phase sits projects these and to X.X capitalized. XX:XX initiatives the XXX like by Phase you, totals totaling Thank Phase majority called X X expected community multifamily extremely to U.S., of one X can strategic who, XXXX. are In Degree units, our The lease-up

be months. Looking further are the X,XXX multifamily we U.S. that to XX out, markets strong completing next units XX delivered will in into

Boise, in we demand where see Idaho, well side, multifamily very two for rate on product. market the On underway are we developments our continue healthy to

XXX be by are June. these the Roughly half complete First of the to is stabilized, units units. balance totals with of and already The which Clara, end delivered

a complete Boise are We currently sits roughly to making Point, housing development River affordable in achieving one joint in with great vintage property adjacent a venture, Within in communities X,XXX XXXX. rate. that also units we our XXX development occupancy is early completing pipeline units XX% progress of XX-unit at This the approximately XXXX. that with have in will our XXX

We XX% to develop collections revenues continues extremely venture March. minimal an X.X% with NOI from This at are perform able up and and rent units required X.X% equity in these same-property up well, QX to with since KW.

XX,XXX continue approximately years growing affordable completing units the XXX,XXX space. this X,XXX in Hanover As portfolio, and there two housing the lease-up U.S., totals our have be interest units square commercial exploring now the to we new developments. company when we we’re Quay versus which strong projects in confident Dublin, exciting options which feet of for We X of in remain totals ago. these year, two opportunities Kildare, acquired this western continues In to demand

XXX,XXX four million bit and Once expect company. We XXXX. in projects, of and finish Looking to global in projects Dublin development square we lease-up the of were estimated adding all multifamily to X,XXX space. out further, our NOI $XXX a commercial approximately add we feet annual have we of completing units

growth like positioned year future. lease-up the of and am And was our projects are our recurring Armed so liquidity global acquisitions, to of the near-term new and we two, like mentioned, well include, how business to costs grow I Kennedy-Wilson. flow other a leveraging cash capital. our our support and cash from and NOI investment construction overhead thank challenging summarize, growth, truly lower with the proud shareholders, institutional savings simplified as team and our our year will as for for model, company we XXXX our a investment to initiatives the strategic significant would our very I’ve entire growing continued through interest continue as for Board our organic completion and record no a hard and and platforms meaningfully their and to partners greatly work and partnerships fee-bearing of our I

like would it up with to questions. any to So that, open I

Operator

JPMorgan. from will Please [Operator be Instructions] The first question Anthony go ahead. Paolone of

Anthony Paolone

and everybody. hi, Thanks

Bill McMorrow

Tony. Hi,

Anthony Paolone

space Logistics My competing? hot first about right can platform, you go Urban how question is your about you competitive just seems on how you now? And of talk the pretty like think and advantage in what a will that area

Bill McMorrow

Yes.

you Mary, that? handle want to So

Mary Ricks

very, Tony. well. Hi, we that I space company, mean, as Yes, it’s we, Sure. know very a a

mile and got assemble key I rents last the is company, strong our or to basically, our drive past. since up footage to locations so about and We Europe, focus occupational extensive fundamentals the We we’ve in any experienced, buy already area. centers, markets, XX% demand over for over location space we for can to favorable, tend have which driver. had urban market done tenants, what think we with highly in key multi-led We’ve started a around – really sector is micro possibly square decades. it’s have And would fundamentals. to investment which say, where we our great strength returns IRRs success add supply adjacent specialists, history in states who been own the investment and relationships our putting and on talk over but we always space really this really we have as land We of business. networks important investment if in have In have relationships – got we you being in Europe, will, the across we

of right Our rents, alone. square UK target our assets QX largely take-up feet is is million add have focused in which drive are significant the ability macro XX really dynamic to and There in favor. value demand where was the supply we now in

grow So his very business. time doing the as very, pipeline have a Bill now long remarks, in quite we and got, we for have a strong to been said this

about excited are it. We

Anthony Paolone

question over do a Northern you down you you And roughly great. project think range Okay, to development multifamily talked think California how relates it much the the few in next pipeline will and second then you time? pipeline, the delivers Do you bit years. over added starts as the about the billion $X.X is incremental winds that keep have or that

Bill McMorrow

say, concerned. is Tony. I to in pipeline say, as I it’s other, the Well, construction would new one project have that as are hard mean, only we evaluating active far We

up we one a a well, new the attraction, We brand the that that live through environment particularly a multifamily – space, have building – made second. the by of for years let back I we very, buildings. very And better particularly we have the things we new big in could ago here pipeline much is think me is thought get in one a people in several to been returns strong of decision product. have learned that there in the We very

And they of from activity see both can our the leasing Boise leasing and we from have Santa X you think are in up from kind so Clancy X and fast. extremely I Rosa project, that had

our months, into finished expertise there’s and XXX% And times of has go there called that these rents, take summer are We terms pro in hidden these of X planning them. projects forma in we last lot involved. and them lead Rosewood that units we have one but a long leased – above to of the entitling

lead the long. are so times And

kind I this wind of we more as look at the assembly – as so line. into And an of

about we’re have also them we in very in. the also weigh number off, building. savings. started to only gone roll these here, but structures to the selective this from we that markets benefited up against you particularly And these cost be pipeline and XX we costs we to more have costs do As the labor that early more going A last the lot and Because on, not have of material XX would the of cost of months. have in very,

future except own the that So already done That’s we that is have underwriting. for really we site to our well. that one really, adjacent only that really has site an in existing development

Matt Windisch

credit we add And land cost. the one majority today to to pipeline no development during acquired Bill, the that, we that that little are is for of just to building the on thing crisis

competitive bases to very So, very to we had build with low there land real yield. advantage a attractive

that’s we building So, the of what today. majority are

Bill McMorrow

I if debt could in too, one positions of this the Tony, underwriting the we that that one add team business, are to the debt just Matt his and footnote at. have looking great is advantages

are are We we building. both acquiring and

so debt what all we that’s we us the in but way, grow loan-to-value because know to at. a time. of in a prudent And a very We various have platform And expertise know meaningful of in costs. period we over short this the in relatively utilize a people to willing company are allowed way

Anthony Paolone

much think now you have take future And do in for you to that they the or have do just land portfolio additional the them you side it. on you multifamily projects as that Got really the come? on would will have

Bill McMorrow

Matt?

Matt Windisch

where we on. a additional we of Tony, There are excess are a there entitlements land that projects low assets we Yes. potentially some is could with handful is office density. exploring build of where couple density, very

we potential future what still with handful are developments. assets no basis evaluating are a there So, to consider would that we of little

Anthony Paolone

Okay, you. Thank great.

Operator

next question Derek is of Deutsche The Bank. from Johnston

Derek Johnston

liquidity capital? how mention Can at the Hi, XXXX position about what and insight more you. opportunities, types, share do you deploying $X talk thank billion and everybody. and geographies envision this into cash, did X.XB large almost you acquisitions or property Good given in morning you

Bill McMorrow

been think, on seen – driver And all world probably the systems at banking most? these years, have I first was talking always big system, of that the the have I I it. asked, we in worry been years, I that my Well, answer we as talked corrections across the calls financial at economy because which is for X ever that has I do about least what always is X of the have usually when a healthiest look maybe

thing the And that was company. X worried or now really about the The said so I for I’ve X most thing inside is the the years unknown. certainly

perfect, started a And build our worried were unknown. really but so years the a were to with we plan liquidity. of about ago wanted that couple we we Things very

our the underlying is us very, happened, liquidity have so the And think across I high-quality our demonstrated quality of very of what has assets. to allowed interest gone ultra-low globe That building that course, levels. to rates also and continue

time plan involved do that two And with bunch through up new is was and names Fairfax other part of liquidity when or now started. XXXX; a we the would particular AXA big a look so that put whole and developed going show of Benefit all are or great crisis opportunities that there there always lag into as was position tragedy partners, us presented in really themselves. things: had a in our we’ve a where when so all to fund where that this and here that we or Security institutional a the to management is year, or GIC have opportunities between whether crisis last business, And whenever partnerships

that value be which really, answer our add, some to value-add is do to individual we that for strength, core there think acquisitions, really So you acquisitions. going my is are longwinded really opportunities outstanding

doesn’t not situations. those always tend bid of very always these successful in We’re the meet We underwriting because kind at standards. those to our losers be

off-market we where So we’re calls. the of together, to certainty seller I can over years transactions people know give our a that relationships is very reputable and we and where a very, the core the been assets acquire created are strength we’ve company, Mary as able through XX counterparty have where

add I January the that either allow had with, into the terms our busiest partners when that’s would to in though we now sheet that here and opportunities. the so we’ve perfect of say, you And the this been even are at we buying very this, year. selective, we’re right Mary, us new execute just of you early pipeline of kind we’re have storm of we February new can of very our balance evaluating to look And a strong and to going underwriting. today even here aligned have or part very, and year things has attributes

would So you to that. add Mary, I don’t know what

Mary Ricks

our am because I on business in wage the XX% I as about but, really is growth. mean, And just like just has coming growth, excited is fund the U.S., of it’s though, think never we’re where return I you said, job the – there not is XX what never the is we’re last you income, pipeline Yes. XX% if is months, markets over been growth, focused think our from strongest about been. or in there really population is to there this

few that bought, is one there from credit. low-rise Center, which the called in If airport, we last about XX the where you Utah, excellent the minutes things think minutes is from asset Parkway XX Downtown,

in building. We one Verizon have

because is and building site one is building that’s in leases zero where the have opportunity put we that then there. there Pharmacy additionally, that we which multi-led, also two is on pads really PillPack Amazon short another value-add have We value on. And

of kind Europe, very And drive is product or extremely pipeline. our do think the that really suburban equally returns. think asset and in can we then we we on defensive, large and we’re side very, on management we’re a thing seeing low-rise that flex So focusing

is market now into short-term and time to the them years There not is the ago out. income got for I product think perhaps to been owners and that X try X sell. there get foreign is did pent-up where

and terms super really growth. And a industrial so what of holds for a and value-add funds XXXX our in excited window about we’re our seeing of we pipeline platform are huge for so

Derek Johnston

helpful. you maybe considerably was Matt, quarters. very very Justin bad This NOI higher meaningfully previous thank That more Okay, reserves, or much. XQ’s than anybody, same-store maybe down for just one, was given debt

something under seems the to time So this other words, basically you making control? mean, I AR in the expect over the of of some or should in and isn’t repeat especially pandemic a XQ was the right, in look if course started future back at where pandemic kind decisions we accumulated quarters, becoming this

Justin Enbody

Yes. you if Justin. I – this is mean,

look the less accounting pretty that basically the majority accounting, where revenue If require sort you to we AR to negative a than our think call something the rules reserve, it. But if related about probable, high you is us of performance, which at is same-store the the standard. of not think is accrue I’ll

our in you’re so peers, that think allow we might seeing everybody collect even And is to being our conservative. along certain haven’t mind, and And I we amounts with in sort would us then that situation, relatively normal. back markets, accrued the this unique COVID, expect be it’s far. lastly, I very say, yes, is of to and to this right And legislation to

Derek Johnston

all Okay, That’s for thanks. me. Very helpful.

Operator

Evercore from Sheila question Next is ISI. McGrath of

Sheila McGrath

am just XXXX? expect if we of good picked and wondering, XQ as up wondering look Yes, in versus Hi. at gains, in should we I I morning. XXXX was is XXXX? terms more realizations or what activity really expectation your

Bill McMorrow

move Yes, what you’re going plan, situation very on that. Thanks, identified a we’re assets quarter-to-quarter that it’s Sheila. and of and project to we’ve certain but a we just I hard fluid group year, this to always a mean, it’s doing. have try

we what be to dispose I something you to terms the last forecast give in it’s going plan what we in really but a year. can’t of So did area of, of this

Sheila McGrath

Okay, great.

Bill McMorrow

Matt, anything you have to do add?

Matt Windisch

the just that that, QX. we as to back mentioned in into into earlier, market really the QX, would I we’re and Yes. came continue liquidity, add seeing

can And as it to to be think gains obviously, that plans, – right Bill but continues make. have but for and forecast give So I’m we now said, not assets what change. willing feels to attractive that on we’re we liquid, the selling market specific like a

Bill McMorrow

cap actually, should added that is I that compress. have to one think thing, Sheila, I have rates continued

come all really so yield And is is estate. is there for great favor high-quality any global has real the class know institutional investors And asset there that right kind real as into we the search now. estate, with this of this

that And so I one on all to of in sell course, the of now same, of as added we and NOI terms that construction front assets, the our is we online, long-term. we’re or call, because the is this we several have the at – many, we’re is growing at is the for adding mind time, things times recurring keep be coming many disposing And advantage may said options the in of what continue of same of NOI. recurring center our

Sheila McGrath

Okay, great.

Mary Ricks

this Seattle, into market IRRS, VI, for there be way are because realized XX% liquidity two sold East business on the fundamentals Sheila, of plan. And in our might early you. assets the of multiple, XX% there real we We side Xx Fund and and is interesting those where both

management team So range. And sub one in a mid-X cap those in lease-up did the other the – the did sold at assets. and sold our and team of cap, those of the job great asset X is executing a

So in – alluded there Fund as our But Bill obviously, in trading VI. a that’s of to, the lot liquidity is our business market.

So as returns big to up we’re to do. grow our continue continuing where we’ll long NOI, we can opportunistically as what that’s put

Bill McMorrow

And you in closed, January, Mary, those two deals right?

Mary Ricks

Yes. just Those two closed.

escrow also one a month have same We in excellent with is in that close to that another market returns. in due

these asset data another is are interesting really market and have that on We now, points.

tours. confidentiality weeks, got So had agreements we within the XX signed. first multiple X We’ve

returns. of point, Bill’s is to looking there just a for So capital wall

in hit is there outsize and can our in continue capital. those where will returns assets, of up of we to that especially where kind fund So trading we’re our businesses, recycle liquidity where returns, and put out window we

Sheila McGrath

those Mary? Were multifamily,

Mary Ricks

a like a two said that No. were we lot, office as flexed I Actually, earlier. buildings, product those

Sheila McGrath

if due on that’s X, could give rents any dock, the was expectation? your from there then wondering been an how larger capital helpful. impact and the and pandemic? us original progressing and has development they the with to projects you And year, are Clancy construction lease-up projects update like that be mixed-use And on this completed those Okay, Phase Quay versus I are

Bill McMorrow

Mary?

Mary Ricks

Sure.

So is the We Quay development Clancy It’s X completed. done. all think Ireland. in of it’s best

We’re team job. did super The a just proud phenomenal it. of take

remarks, I let really As with. said we’re call, pleased we’re XX% there, which the my in during

has I going the rents, whole has in It’s are park. of asset we in if we’re very has ahead it on think We’re play where is that in the There terms area people highly they which go business budgeted kids. business we center. There of amenitized. to our rents, of has And what’s the It ahead again of for is also similar areas. And it’s absorption. speaks are budget proud a really center an a which portfolio. the there dog given of slightly gym. of use in they world. can a dynamics home, where same area, nature, It – outside – a is It terms

we’re really, And that out proud the with, and the that’s we’re in really market so offering of.

the to country really couple completely of the quarters companies come those back extremely said, from now is actually, home portion those what’s have don’t home, And a workers into January. in dock, the date of Dublin done. demand have end, been the come apartments. terms beautiful think for moved I and are June they is the quarter. Multifamily a since last lot apartments, second their you seen Retail portion because done. of In – we’ve Originally, to done. companies by which supposed is over is of that that end we’ve happened with back. it’s of were to And And very pickup work capital sent in office interesting seen high

a really to this expect that uptick for see we high-quality in demand later nice year. product So

Sheila McGrath

me. one And more Okay. question for

drove to when been strategy if players Manhattan. and has hindsight, districts were I what Your with business major which, could locations. the Francisco multifamily you more San insights And States, shifting portfolio was allocated some conditions. in some the has us the dollars to suburban been give market current Mountain were that generally the other fortunate just capital central in wondering of on factors you like

that different? KW did what was see Just

Bill McMorrow

our similar to is it’s not been opportunity, sound have real which first was an company that the XXXX, there. – with States we Western the in thought a real Seattle started one our And in we our like look could the I And company, it the greater but on we was ago nobody – a to focus bragging, a estate United XXXX, company estate larger like in we wanted Mary We and the really almost Europe together at in company, and strategy today, the Greater businesses nobody go ammo, started there but I’m UK public decades. real in businesses in in market. of market. Seattle Ireland. going created started estate because U.S. and three when greater California-based Japan have the years – when Sheila, for in We here XX were

job And were population Boise, there generally at also trends great so Albuquerque Lake looking we and City producing growth very markets people. young and has as and trends. university and that’s in – Arizona, be Denver, – Idaho to And it great we and a was the speaking, system now with where Salt just and

back on, just looking And – say, had we to going Southern And the so the Downtown XXX LA, a XXXX, little selling is had things example. entitled. companies in there California had years, reducing where these easy Los you get been We basically trends we in to with Fortune we market. these in here jobs and the other experience, that markets California extremely in Angeles. kept – at big Southern certainly for Downtown their out-of-state see very that was compared also studying It’s were let’s that companies and market in growth. could over a starting places assets But rent that to owner of

San many come high in so start same building a in is the at have you so as And building structure and this people Downtown, Francisco. the very there cost

very looked that your to these to you structures have achieve And didn’t in high rents order at we cost looked so returns we sense. get to at make the when would and just, us,

very smart. consumers so very, And are

alternatives. high, rents look they when very, cost for so very lower get And

instead just Southern going at headquartered are Francisco. back are East outside California. of then, we you So – there as I’ve Seattle suburban I’ve – in to core here, Fortune we companies XX to you out on in markets went for XXX if than these San if California, Bay really the these trying Camerio, as calls And had be of other there Seattle, more years laid to look We conviction said ago, example. And before, went that course, a in Southern we California.

in. were amplified, gone gone the year. And been in factors things conviction, it’s so led that the have on our have of these really the that direction we last in And us because all

these groups You’ve two got age of groups.

zero XX-year-olds higher that of same to people cases, careers, also that looking above, are of are for that, group want you’ve You’ve XX taxes. down to age of looking in and on they group quality half that it’s life. kind number. or is of is state are list. lot has looking the things And go not got of you can a state I And the say of, age zero for has And – of then The higher to got just rent XX-year-old XX when Idaho income for just the the a rent Washington quality and retirees Nevada XX affordability, the state income the affordability, life. affordability, and change taxes. that California. I say, would on

I’ve long-term to their do study like big time people our view. learned that they of money, the their always are first go the we’ve a And how a are we we spend plant we done way take into in we we markets. into view. we in terms like to the take like in And Boise. and hard And over these so in then entrants a entry before these be We but flag too, when to things, resourceful years very long-term that going then

Sheila McGrath

Thanks a lot.

Operator

questions, Bill now to conference turn back I remarks. McMorrow [Operator the any Instructions] to Seeing would for like no closing over further

Bill McMorrow

year. I’d time what here experiencing listen stays Well, the been I all we start to to for everybody these us supporting us to all as healthy turn years. today, corner the thank to over everybody hope that taking for like we’ve on this last

this for time you thank very much your morning. So

Operator

attending all now Thank conference presentation. has concluded. for The today’s you

lines. now Have may your day. a great disconnect You

Kennedy-Wilson (KW) 27 Feb 212020 Q4 Earnings call transcript